RIVN Rocket Fuel: The Real Reasons Rivian Stock Just Exploded Higher

Another day, another electric vehicle stock defying gravity—but this time, Rivian's surge actually has some substance behind it.

Production targets aren't just being met—they're getting crushed. Supply chain bottlenecks? Mostly solved. And demand for those adventure-ready electric trucks keeps climbing despite what the macro-economy throws at us.

Wall Street analysts, always late to the party, finally upgraded their price targets. Short sellers got squeezed—hard. And let's be real, when Tesla sneezes, the whole EV sector catches a cold—or in this case, a rally.

Does this mean Rivian's finally figured out how to make money? Ask me again after their next earnings call. Until then, enjoy the ride while the momentum lasts—because in this market, today's rocket fuel is tomorrow's regression to the mean.

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Although Georgia hasn’t given Rivian direct financial support, the state reportedly spent over $32 million to prepare the site for construction. At the federal level, the U.S. Department of Energy has offered Rivian a $6.57 billion conditional loan under its Advanced Technology Vehicles Manufacturing Loan Program to help fund the project. However, this major investment comes at a difficult time for the company, which is currently facing weak sales and slow adoption of its electric vehicles, especially the R1T pickup. Indeed, it was recently named one of the least reliable by Consumer Reports.

Even though EV sales growth is slowing—up just 1.5% in the first half of 2025—and many automakers are cutting back production due to the end of the $7,500 tax credit, Rivian is continuing to expand. In fact, a company executive told Fortune that Rivian was not built around government tax breaks and remains confident in its future. As a result, the company’s bold plans seem to be exciting investors, as Rivian’s stock ROSE over 7% on Tuesday.

Is RIVN Stock a Buy or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 12 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $13.89 per share implies 5.1% downside risk.